ECONOMICS1: Analysis of Macroeconomic Variables and Policies in the US
VerifiedAdded on 2023/03/17
|30
|7993
|80
Report
AI Summary
This report provides a comprehensive analysis of the macroeconomic environment in the United States, focusing on variables and policies relevant for investment decisions. It examines the general business environment, including factors like starting a business, electricity access, property registration, and taxation. The report delves into key macroeconomic indicators such as inflation, unemployment, average wage rates, economic growth, and real interest rates. It also explores government expenditure, taxation policies, and monetary policies, including the effects of the Global Financial Crisis. The report assesses the procedures for starting a business, including registration, obtaining necessary permits and accounts, and understanding tax responsibilities. The report also compares the US to other countries in terms of ease of doing business. The conclusion recommends investment in the United States due to favorable macroeconomic factors, such as a higher GDP per capita. The report aims to provide detailed knowledge of the macroeconomic conditions of the US and how changes in macroeconomic variables and fiscal and monetary policies would influence long-term investment decisions. The report considers Primus Telecommunications' investment in the United States and provides a detailed look at the procedures and factors considered when starting a business in the US.

ECONOMICS1
Macroeconomic Policy
By (Name)
Course
Instructor’s Name
Institutional Affiliation
The City and State
The Date
Macroeconomic Policy
By (Name)
Course
Instructor’s Name
Institutional Affiliation
The City and State
The Date
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

ECONOMICS2
Table of Contents
1. Executive summary...................................................................................................................1
2. Introduction...............................................................................................................................3
3. Analysis and Discussion of major macroeconomic variables in the United States...................4
3.1. General Business environment..............................................................................................4
3.1.1. starting a business..............................................................................................................4
3.1.2. Electricity...........................................................................................................................8
3.1.3. Property registration.........................................................................................................8
3.1.4. Paying taxes.......................................................................................................................9
3.1.5. Trade across borders.......................................................................................................10
3.1.6. Protecting minority investors..........................................................................................11
3.1.7. Construction permits.......................................................................................................12
3.2. Inflation................................................................................................................................13
3.3. Unemployment.....................................................................................................................15
3.4. Average wage rate................................................................................................................17
3.5. Economic growth.................................................................................................................18
3.6. Real Interest rate.................................................................................................................19
3.7. Government expenditure in the economy............................................................................21
3.8. Taxation policy in the United States....................................................................................22
3.9. Monetary policy...................................................................................................................24
3.10. Effects of the Global Financial Crisis (GFC) in the United States..................................25
4. Conclusion and Recommendation...........................................................................................26
References............................................................................................................................................28
Table of Contents
1. Executive summary...................................................................................................................1
2. Introduction...............................................................................................................................3
3. Analysis and Discussion of major macroeconomic variables in the United States...................4
3.1. General Business environment..............................................................................................4
3.1.1. starting a business..............................................................................................................4
3.1.2. Electricity...........................................................................................................................8
3.1.3. Property registration.........................................................................................................8
3.1.4. Paying taxes.......................................................................................................................9
3.1.5. Trade across borders.......................................................................................................10
3.1.6. Protecting minority investors..........................................................................................11
3.1.7. Construction permits.......................................................................................................12
3.2. Inflation................................................................................................................................13
3.3. Unemployment.....................................................................................................................15
3.4. Average wage rate................................................................................................................17
3.5. Economic growth.................................................................................................................18
3.6. Real Interest rate.................................................................................................................19
3.7. Government expenditure in the economy............................................................................21
3.8. Taxation policy in the United States....................................................................................22
3.9. Monetary policy...................................................................................................................24
3.10. Effects of the Global Financial Crisis (GFC) in the United States..................................25
4. Conclusion and Recommendation...........................................................................................26
References............................................................................................................................................28

ECONOMICS3
1. Executive summary
The paper discusses and analyses the macroeconomic variable and polices that can be depended
on to invest in the United States. The report indicates that Primus is a Telecommunication
company that operates in Australia with its major focus on broadband, mobile and fixed services.
Also, the report indicates that the company was the 1ts Telecom carrier to get a license at the
time it was deregulated. The research results indicate that the United States the macrocosmic
factors in the United States favor private investment. The report indicates that the United States
has a higher Gross Domestic Product per capita as compared to Australia. Also, the report
recommends investing in the United States because the business can be in the position to attain
increased economic benefits in the long run.
1. Executive summary
The paper discusses and analyses the macroeconomic variable and polices that can be depended
on to invest in the United States. The report indicates that Primus is a Telecommunication
company that operates in Australia with its major focus on broadband, mobile and fixed services.
Also, the report indicates that the company was the 1ts Telecom carrier to get a license at the
time it was deregulated. The research results indicate that the United States the macrocosmic
factors in the United States favor private investment. The report indicates that the United States
has a higher Gross Domestic Product per capita as compared to Australia. Also, the report
recommends investing in the United States because the business can be in the position to attain
increased economic benefits in the long run.
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide

ECONOMICS4
2. Introduction
The aim of this report is to provide a detailed knowledge about the macroeconomic conditions of
one of the Australian trading and investment partner in the recent years. Also, the report aims at
illustrating how the changes in the macroeconomic variables and fiscal and monetary policies in
the target country would influence my company's long term investment decision. According to
the "United Nations’ International Standard Industrial Classification of All Economic
Activities," the chosen company is Primus Telecommunications (Eaglen et al 2009). The
company aims at making a long term investment in the United States. Primus is a
Telecommunication company that operates in Australia with its major focus on broadband,
mobile and fixed services. The company was the 1ts Telecom carrier to get a license at the time
it was deregulated. Currently, the company operates in major cities such as Melbourne, Adelaide,
Perth, Brisbane and Sydney. The company is also aiming at investing in the United States and it
needs a general analyses and justification that are favorable for its operations. Therefore, the
report will clearly indicate the macroeconomic variables and policies that the company need to
put into consideration (Phil 2012).
3. Analysis and Discussion of major macroeconomic variables in the United States
3.1. General Business environment
This section aims at analyzing the organization’s environment in the United States including the
factors that can affect the business operation and the factors that can largely influence an
organization’s investment. The environmental factors are considered to affect the general
operation of the company. As a result of the generalenvironmental influencetowards the business
2. Introduction
The aim of this report is to provide a detailed knowledge about the macroeconomic conditions of
one of the Australian trading and investment partner in the recent years. Also, the report aims at
illustrating how the changes in the macroeconomic variables and fiscal and monetary policies in
the target country would influence my company's long term investment decision. According to
the "United Nations’ International Standard Industrial Classification of All Economic
Activities," the chosen company is Primus Telecommunications (Eaglen et al 2009). The
company aims at making a long term investment in the United States. Primus is a
Telecommunication company that operates in Australia with its major focus on broadband,
mobile and fixed services. The company was the 1ts Telecom carrier to get a license at the time
it was deregulated. Currently, the company operates in major cities such as Melbourne, Adelaide,
Perth, Brisbane and Sydney. The company is also aiming at investing in the United States and it
needs a general analyses and justification that are favorable for its operations. Therefore, the
report will clearly indicate the macroeconomic variables and policies that the company need to
put into consideration (Phil 2012).
3. Analysis and Discussion of major macroeconomic variables in the United States
3.1. General Business environment
This section aims at analyzing the organization’s environment in the United States including the
factors that can affect the business operation and the factors that can largely influence an
organization’s investment. The environmental factors are considered to affect the general
operation of the company. As a result of the generalenvironmental influencetowards the business
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

ECONOMICS5
operation, various trends and events need to be anticipated so as to evaluate the implications of
such events and trends (Matthew 2012).
3.1.1. starting a business
Before starting any business in the United States, various procedures have to be followed so as to
effectively carryout your business activities. The following steps are required for one to begin a
business in the United States,
1. make a decision of the right business that you wish to start
The decision of choosing the right business is considered to be very important because the nature
of the business selected influences all the day to day activities such as taxes, the number of
individual assets at risk. In addition, it is also very important in knowing the type of the business
and selects one that is best according to the business goal and situation (Andrew, et al 2012).
2. Decide the area where to your forming your company
For United States residents, they are required to locate their business or companies in their areas
of residence. For example if an individual resides in California, he or she is advisable to locate
his or her business in California. However, for people who are not residents of the United States
but have plans of stating in the United States, and then they are required to locate their
businesses in Wyoming because it is the best friendly state for business in the United States for
all Non-United states residents (Zandi, & Mark 2009).
3. Get an Agent who is Registered
In this case, all the business or companies in the United States are required to be with a
"Registered Agent" having a physical address but not "P.O.BOX" in the course of normal
operation, various trends and events need to be anticipated so as to evaluate the implications of
such events and trends (Matthew 2012).
3.1.1. starting a business
Before starting any business in the United States, various procedures have to be followed so as to
effectively carryout your business activities. The following steps are required for one to begin a
business in the United States,
1. make a decision of the right business that you wish to start
The decision of choosing the right business is considered to be very important because the nature
of the business selected influences all the day to day activities such as taxes, the number of
individual assets at risk. In addition, it is also very important in knowing the type of the business
and selects one that is best according to the business goal and situation (Andrew, et al 2012).
2. Decide the area where to your forming your company
For United States residents, they are required to locate their business or companies in their areas
of residence. For example if an individual resides in California, he or she is advisable to locate
his or her business in California. However, for people who are not residents of the United States
but have plans of stating in the United States, and then they are required to locate their
businesses in Wyoming because it is the best friendly state for business in the United States for
all Non-United states residents (Zandi, & Mark 2009).
3. Get an Agent who is Registered
In this case, all the business or companies in the United States are required to be with a
"Registered Agent" having a physical address but not "P.O.BOX" in the course of normal

ECONOMICS6
business time/hour in order to receive the documents of the company on their behalf. The
Registered Agent helps the company to receive its legal documents and official papers. A
Registered Agent acts as a service so that a company does not miss any useful document related
to the state taxes or lawsuits. This implies that the Agent must be located in the same state with
the Company (Wheatley, et al 2010).
4. Register your company
After deciding the nature of the business and after deciding the location of such a business, then
the next step should be registration of the company by filling the required fillings (Stiglitz 2010).
5. Get a United States mailing address
Most of the banks in the United States require residential address or mailing addresses in order to
open up any bank account. In the United States, you are required to provide the business address
in case you possess one. However, if you don’t possess a United States address, you can be in the
position to get one using the following companies, iPostal1.com, USAMail.com and many others
(Joseph, et al James 2011).
6. Open a United States bank account for the business
When starting a business in the United States, most non United States residents find it very
difficult to open a bank account in the different states. Opening up a bank account can be done in
case a company gets an EIN. Recently, any company can be in the position to open their business
account. In addition, the entrepreneur is required to visit the United States to open their bank
accounts (Brand 2015).
business time/hour in order to receive the documents of the company on their behalf. The
Registered Agent helps the company to receive its legal documents and official papers. A
Registered Agent acts as a service so that a company does not miss any useful document related
to the state taxes or lawsuits. This implies that the Agent must be located in the same state with
the Company (Wheatley, et al 2010).
4. Register your company
After deciding the nature of the business and after deciding the location of such a business, then
the next step should be registration of the company by filling the required fillings (Stiglitz 2010).
5. Get a United States mailing address
Most of the banks in the United States require residential address or mailing addresses in order to
open up any bank account. In the United States, you are required to provide the business address
in case you possess one. However, if you don’t possess a United States address, you can be in the
position to get one using the following companies, iPostal1.com, USAMail.com and many others
(Joseph, et al James 2011).
6. Open a United States bank account for the business
When starting a business in the United States, most non United States residents find it very
difficult to open a bank account in the different states. Opening up a bank account can be done in
case a company gets an EIN. Recently, any company can be in the position to open their business
account. In addition, the entrepreneur is required to visit the United States to open their bank
accounts (Brand 2015).
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide

ECONOMICS7
7. Open a merchant account of the business in order to receive payments from the clients or
customers
In the United States, the "merchant service account" is free. This service allows the business to
accept debit and credit card transactions from its customers. The merchant account can be
opened after a business has got an EIN. Merchant accounts are got from Authorize.net,
payoneer.com, stripe.com, and Braintreepayments.com (Lang, et al 2012).
8. Get an insurance for the business (if necessary)
The cost of getting insurance varies according to the business operation. In the United States,
business insurance is very important because it helps in protecting a company from different
unexpected costs that may arise in a business operation. If the business is not insured, natural
disasters, lawsuits and accidents could lead to the decline of the business if it is not protected
(Hout 2012).
9. Get ITIN (if the company is a non-United States citizen without SSN)
In case an individual opening up a business in the US is not a citizen and does not have a "Social
Security Number", he or she will be required to have an "Individual Tax Identification Number
(ITIN)." An Individual Tax Identification Number is an individual tax Identity number that is
issued to an individual by the "IRS." ITIN is required for; opening a United States bank account,
apply for any rental apartment, and many others (Tausig 2013).
10. Understand your responsibilities of paying tax and make a file for the taxes
In order to appropriately file a tax in the United States, the entrepreneur is required to consult an
accountant so as to tax his or her taxes at the right time and be in the position to set up his or her
7. Open a merchant account of the business in order to receive payments from the clients or
customers
In the United States, the "merchant service account" is free. This service allows the business to
accept debit and credit card transactions from its customers. The merchant account can be
opened after a business has got an EIN. Merchant accounts are got from Authorize.net,
payoneer.com, stripe.com, and Braintreepayments.com (Lang, et al 2012).
8. Get an insurance for the business (if necessary)
The cost of getting insurance varies according to the business operation. In the United States,
business insurance is very important because it helps in protecting a company from different
unexpected costs that may arise in a business operation. If the business is not insured, natural
disasters, lawsuits and accidents could lead to the decline of the business if it is not protected
(Hout 2012).
9. Get ITIN (if the company is a non-United States citizen without SSN)
In case an individual opening up a business in the US is not a citizen and does not have a "Social
Security Number", he or she will be required to have an "Individual Tax Identification Number
(ITIN)." An Individual Tax Identification Number is an individual tax Identity number that is
issued to an individual by the "IRS." ITIN is required for; opening a United States bank account,
apply for any rental apartment, and many others (Tausig 2013).
10. Understand your responsibilities of paying tax and make a file for the taxes
In order to appropriately file a tax in the United States, the entrepreneur is required to consult an
accountant so as to tax his or her taxes at the right time and be in the position to set up his or her
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

ECONOMICS8
payroll. By finding an account, the entrepreneur will be able to maximize deductions and reduce
taxes (Olney 2011).
11. make sure that the business is in line with other county, federal and city requirements
This is very important because it helps the entrepreneur to understand if the business is in line
with the laws of that state where it is established. In addition, it helps in understanding if the
business requires a working permit or license. These requirements depend on the location of the
business (Boland, et al 2015).
12. Carryout consultation from the lawyer of the business
Starting a business in the United States is very challenging and complicated. Most of the
entrepreneurs in the United States make a very big mistake of failing to consult their business
lawyers while starting a business. This creates a bigger risk to the personal assets of the business
for example car, property, home, bank account and many others (David 2013).
The process of starting up a business in the United States is longer because it may take up to
three weeks. Each process performed while starting a business in the United States may take one
or two days to be completed. The process of starting up a business in the United States is quite
longer and complicated unlike that of Australia which usually requires only three procedures and
they take a very small period of time (Thomas 2013).
3.1.2. Electricity
The processes and practices of getting electricity are the United States scores 82.15 percent while
Australia scores 82.31 percent. This indicates that Australia has favored practice and procedures
of getting electricity as compared to the United States. To get electricity in the United States,
payroll. By finding an account, the entrepreneur will be able to maximize deductions and reduce
taxes (Olney 2011).
11. make sure that the business is in line with other county, federal and city requirements
This is very important because it helps the entrepreneur to understand if the business is in line
with the laws of that state where it is established. In addition, it helps in understanding if the
business requires a working permit or license. These requirements depend on the location of the
business (Boland, et al 2015).
12. Carryout consultation from the lawyer of the business
Starting a business in the United States is very challenging and complicated. Most of the
entrepreneurs in the United States make a very big mistake of failing to consult their business
lawyers while starting a business. This creates a bigger risk to the personal assets of the business
for example car, property, home, bank account and many others (David 2013).
The process of starting up a business in the United States is longer because it may take up to
three weeks. Each process performed while starting a business in the United States may take one
or two days to be completed. The process of starting up a business in the United States is quite
longer and complicated unlike that of Australia which usually requires only three procedures and
they take a very small period of time (Thomas 2013).
3.1.2. Electricity
The processes and practices of getting electricity are the United States scores 82.15 percent while
Australia scores 82.31 percent. This indicates that Australia has favored practice and procedures
of getting electricity as compared to the United States. To get electricity in the United States,

ECONOMICS9
various processes have to be followed for example, Applying for electricity, approval of the
application form, getting a utility permit, receive electricity connections, installation, and an
implementing automated machines (Lowrie 2012).
3.1.3. Property registration
In the United States, the registering a property is quite important. The procedures followed while
registering a property in UnitedStates are straightforward so long as the entrepreneur make
enough research and possess the necessary requirements. Here is a procedure followed to register
a property in the United States.
Calculating of the money paid as "stamp duty." this is in the form of a tax that a state
levies as one of the most important item required to register a property.
Preparation of a sales Deed, this document is very important during the registration
process. A valid legal sales deed of the company is supposed to appear on the business's
stamped paper.
Collect the necessary documents, while meeting the sub-registrar, there are some
documents that are required to be checked first.
Process an appointment to meet the sub-Registrar, registration is only done when a sub-
registrar is present.
Payment of property registration fees, after paying stamp duty and the sub-registrar
verifying the documents, the owner of the property will be required to pay fees for
registering his or her property
Collection of the registered documents, after approving the documents by the sub-
registrar, the original registered documents are given back to the property owner.
various processes have to be followed for example, Applying for electricity, approval of the
application form, getting a utility permit, receive electricity connections, installation, and an
implementing automated machines (Lowrie 2012).
3.1.3. Property registration
In the United States, the registering a property is quite important. The procedures followed while
registering a property in UnitedStates are straightforward so long as the entrepreneur make
enough research and possess the necessary requirements. Here is a procedure followed to register
a property in the United States.
Calculating of the money paid as "stamp duty." this is in the form of a tax that a state
levies as one of the most important item required to register a property.
Preparation of a sales Deed, this document is very important during the registration
process. A valid legal sales deed of the company is supposed to appear on the business's
stamped paper.
Collect the necessary documents, while meeting the sub-registrar, there are some
documents that are required to be checked first.
Process an appointment to meet the sub-Registrar, registration is only done when a sub-
registrar is present.
Payment of property registration fees, after paying stamp duty and the sub-registrar
verifying the documents, the owner of the property will be required to pay fees for
registering his or her property
Collection of the registered documents, after approving the documents by the sub-
registrar, the original registered documents are given back to the property owner.
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide

ECONOMICS10
Considering the producers required registering property in Australia and United States, they all
look the same but a difference may arise on the time taken to process the registration. The
registration process depends on the terms and conditions of a given country (Stiglitz, & Joseph
2012).
3.1.4. Paying taxes
Before starting a company in any country or area, taxes are the most important things that need
to be considered. Low taxes on foreign companies play an important role in helping the business
grow faster hence increased income in the shortest run. In the United States, business are
supposed to pay a cooperate tax which is implemented most at some local, most state and federal
levels. The tax is imposed on the income that is earned by a business i9n the United States that is
received or earned within one year (Vicki, & Ramsey 2014). The tax is paid using the "employer
Identification Number." Further, all business operating in the United States are supposed to file
their tax returns. The payment of the tax can also be made in estimated payments or advance
installments for most of the states in the United States. Upon making different payments such as
wages, businesses may be in the position to withhold the obligation of a tax (Aneel 2015).
In United States, most of the localities and states impose a corporate income tax. However, the
rules of determining the tax depends on the state or locality. Also, United States imposes a value
added tax to all the commodities produced by a given company. However, Australia gains much
from its VAT because the tax is higher than that of US (Cassens 2014). In United States, the
shareholders of a given company are meant to pay an individual or corporate income tax in case
the earnings of the business are distributed. The distribution of earnings is basically regarded as
"a dividend." Notably, US taxes all foreign or non US companies differently as compared to the
Considering the producers required registering property in Australia and United States, they all
look the same but a difference may arise on the time taken to process the registration. The
registration process depends on the terms and conditions of a given country (Stiglitz, & Joseph
2012).
3.1.4. Paying taxes
Before starting a company in any country or area, taxes are the most important things that need
to be considered. Low taxes on foreign companies play an important role in helping the business
grow faster hence increased income in the shortest run. In the United States, business are
supposed to pay a cooperate tax which is implemented most at some local, most state and federal
levels. The tax is imposed on the income that is earned by a business i9n the United States that is
received or earned within one year (Vicki, & Ramsey 2014). The tax is paid using the "employer
Identification Number." Further, all business operating in the United States are supposed to file
their tax returns. The payment of the tax can also be made in estimated payments or advance
installments for most of the states in the United States. Upon making different payments such as
wages, businesses may be in the position to withhold the obligation of a tax (Aneel 2015).
In United States, most of the localities and states impose a corporate income tax. However, the
rules of determining the tax depends on the state or locality. Also, United States imposes a value
added tax to all the commodities produced by a given company. However, Australia gains much
from its VAT because the tax is higher than that of US (Cassens 2014). In United States, the
shareholders of a given company are meant to pay an individual or corporate income tax in case
the earnings of the business are distributed. The distribution of earnings is basically regarded as
"a dividend." Notably, US taxes all foreign or non US companies differently as compared to the
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

ECONOMICS11
home businesses. Foreign companies operating in the United States are meant to tax on the
income of the business if the income obtained is in connection with a United States business or
trade. Also, foreign companies operating in the United States are meant to withhold a 30% tax on
interest, royalties, dividends and other forms of income (Greenstone 2012).
3.1.5. Trade across borders
Most of the countries across the world wish to take part in trade across borders so as to increase
their tax revenue and foster economic growth. In United States, trade across borders involves the
international exports and imports of the country. United States is considered to be among the
strong economic markets across the world. The United States trades with various countries
across the globe (Zeigler 2014). In 2006, the Gross United States asset that was held by
foreigners amounted to US$16.3 trillion. Just like Australia, the United States is also a member
of various international trade institutions. The United States joined this organization with an
intention of coming into close with other countries on different issues regarding trade. According
to the internal LPI index of World Bank, the United States is ranked as the 14 and Australia is
the 4th (Cowen 2011,).
Before staring up any form of business, contracts and laws need to be implemented with an
intention of enforcing and protecting the rights of the companies and entrepreneurs. In this case,
a contract is referred to as an agreement signed between different parties with an intention of
creating a "reciprocal obligation" that is enforced by a given law (Cowen 2011). The
enforcement of contracts and laws is vital to the business because it helps in measuring the cost
and time required to resolve any form of business disputes through the local court. In the United
States, the "contract law" governs the transactions that involve selling of goods (Brynjolfsson, et
home businesses. Foreign companies operating in the United States are meant to tax on the
income of the business if the income obtained is in connection with a United States business or
trade. Also, foreign companies operating in the United States are meant to withhold a 30% tax on
interest, royalties, dividends and other forms of income (Greenstone 2012).
3.1.5. Trade across borders
Most of the countries across the world wish to take part in trade across borders so as to increase
their tax revenue and foster economic growth. In United States, trade across borders involves the
international exports and imports of the country. United States is considered to be among the
strong economic markets across the world. The United States trades with various countries
across the globe (Zeigler 2014). In 2006, the Gross United States asset that was held by
foreigners amounted to US$16.3 trillion. Just like Australia, the United States is also a member
of various international trade institutions. The United States joined this organization with an
intention of coming into close with other countries on different issues regarding trade. According
to the internal LPI index of World Bank, the United States is ranked as the 14 and Australia is
the 4th (Cowen 2011,).
Before staring up any form of business, contracts and laws need to be implemented with an
intention of enforcing and protecting the rights of the companies and entrepreneurs. In this case,
a contract is referred to as an agreement signed between different parties with an intention of
creating a "reciprocal obligation" that is enforced by a given law (Cowen 2011). The
enforcement of contracts and laws is vital to the business because it helps in measuring the cost
and time required to resolve any form of business disputes through the local court. In the United
States, the "contract law" governs the transactions that involve selling of goods (Brynjolfsson, et

ECONOMICS12
al 2011). Before enforcing a given contract the country is required to first follow some indicators
such as the cost of enforcing the contract, the effect of the contract to the parties involved, the
time required to enforce a given contract though courts and the effectiveness of the judicial
process. In this case, the "quality of the judicial process" is very important because it determines
if a given county can be able to form and adapt to good practices which may influence cost and
time performance while enforcing the contracts. According to the data variables of World Bank,
Australia scored 79.00% and the United States scored 72.1 in enforcing contracts (Navarro
2011).
3.1.6. Protecting minority investors
For the business to improve its performance, new investors are required because they provide
new investments to the company. In addition, all companies or businesses which are aim at
expanding and developing, they require getting access to different external financing. The
protection of the minority investors plays a bigger role in increasing the invertors' confidence in
the market (Matthew 2013).According to the recent World Bank statistics, they indicate that
Australia scores 60.00 percent and the United States scores 64.67 in the protection of minority
investors. This indicates that both Australia and the United States almost have the same
performance though US is ranked highly as compared to Australia (Rampell 2012).
In United States, most new comers find a very big challenge in getting credit. Most of the new
migrants in the United States quickly understand that they cannot be in the position to acquire a
credit card, an apartment or even buying a car as a result of lack of credit history. In order to get
credit in the United States, one is required to have at least a credit history. In the United States
where an individual is a temporary or permanent resident is required to begin establishing his or
al 2011). Before enforcing a given contract the country is required to first follow some indicators
such as the cost of enforcing the contract, the effect of the contract to the parties involved, the
time required to enforce a given contract though courts and the effectiveness of the judicial
process. In this case, the "quality of the judicial process" is very important because it determines
if a given county can be able to form and adapt to good practices which may influence cost and
time performance while enforcing the contracts. According to the data variables of World Bank,
Australia scored 79.00% and the United States scored 72.1 in enforcing contracts (Navarro
2011).
3.1.6. Protecting minority investors
For the business to improve its performance, new investors are required because they provide
new investments to the company. In addition, all companies or businesses which are aim at
expanding and developing, they require getting access to different external financing. The
protection of the minority investors plays a bigger role in increasing the invertors' confidence in
the market (Matthew 2013).According to the recent World Bank statistics, they indicate that
Australia scores 60.00 percent and the United States scores 64.67 in the protection of minority
investors. This indicates that both Australia and the United States almost have the same
performance though US is ranked highly as compared to Australia (Rampell 2012).
In United States, most new comers find a very big challenge in getting credit. Most of the new
migrants in the United States quickly understand that they cannot be in the position to acquire a
credit card, an apartment or even buying a car as a result of lack of credit history. In order to get
credit in the United States, one is required to have at least a credit history. In the United States
where an individual is a temporary or permanent resident is required to begin establishing his or
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide
1 out of 30
Related Documents

Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
Unlock your academic potential
Copyright © 2020–2025 A2Z Services. All Rights Reserved. Developed and managed by ZUCOL.